CL Redux

un freaking believable ... i longed .75 on the break above the consolidation, stop was .66 -- POORLY placed stop... it went to .65, and got me. My target was 94.24, and it rocks up .. my #1 goal right now is trade management. If I even hint of moving a stop or putting a 9 tick stop on that kind of trade, somebody please just shoot me. Even worse is I forgot the news at 10:00 even though I looked twice today, due to the fact that I forgot to put a note on the chart.. should not be trading that close to news though with a good stop it would have worked out well in this case.
 
Hi guys.....

Was long from .67, target .90, stop .20. Well, it blew though my target, but what I want to know is why do I get filled exactly at .90, yet when its a stop loss it would be massive slippage??

Thanks very much....
 

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Quote from ZEAK:

Hi guys.....

Was long from .67, target .90, stop .20. Well, it blew though my target, but what I want to know is why do I get filled exactly at .90, yet when its a stop loss it would be massive slippage??

Thanks very much....
More...

A limit order is filled at that price or better. Your sell limit is triggered when another buyer places a market buy, and is matched to your OFFER. You get slipped on a stop order because it is a market order, and says "give me the best price available," not a specific price.

Think of it like this-- at .90, say there are 100 other sell limits including your profit target. But if there are 300 buyers that place market buy orders, then 100 of them will get filled at .90, but the other 200 will get filled at .91 or higher. Your stop is a market order, and if limit orders are exhausted at a price before one is matched to your market order, then you will get a worse price.
 
So if I had my target order a stop, instead of a stop limit, there would have been slippage.....but the good kind??

Ok, thanks JD, think I got it.
Good trading...
 
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